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Trimet C o m p a n y n e w s w o r l d w i d e at around USD120 per tonne. Nalco will apply for forest and environment clearance after it receives the mining leases, and it may take five to seven years before alumina production starts at the export-oriented refinery. pisolite Hills bauxite resource upgraded by 30% Cape Alumina has raised the bauxite resource on its proposed 7m tpy Pisolite Hills project in Queensland, Australia, by 30% to 130m tonnes. This upgraded estimate will form a ‘pivotal component’ of the bankable feasibility study due to commence in September 2009. There is potential for an initial 12 to 15 year operation at Pisolite Hills at a target production rate of 7m tpy. The bauxite is suitable as a blending feed for the new breed of low-temperature Bayer-process refineries in China. Cape Alumina expects to start construction on the Pisolite Hills project in early 2011. ■ recycling and secondary smelting aleris recalls workers on auto restarts Aleris International Inc. said more than 100 aluminium workers have been recalled during July at its specification alloy and recycling plants in Coldwater and Saginaw/Michigan, novelis may stop buying scrap from aB inBev Novelis Inc. has come close to saying it will drop its long-time arrangement for buying much of its can scrap through Anheuser- Busch Inbev (AB InBev), a major customer for the resulting aluminium canstock. Novelis North America announced it will change its used beverage can (UBC) procurement strategy at the end of its current contractual commitments. Come January, the most likely outcome will be an expanded purchasing unit at Novelis buying directly from recyclers and municipalities, although there has been no rumour about the company recruiting scrap traders. Long-shot possibilities are outsourcing to a nationwide scrapyard chain or to Coca-Cola Recycling LLC, which so far plays only a minor role as a direct scrap supplier to Novelis, but which has greatly expanded its staff and capabilities over the past 18 months. It is part of Coca-Cola Enterprises Inc. A stumbling block would be that Coca-Cola would probably want a fee-based tolling arrangement, with a fixed conversion charge, while Novelis likely would favour a buy-sell structure for flexibility and confidentiality. AB InBev has the twin roles of supplying Novelis with UBCs and of buying the canstock made from it. The two sides of the arrangement involve different segments of AB InBev. The sort of relation- Steele/Alabama, and Morgantown/ Kentucky. At the ingot casting section of the sheet mill in Lewisport/ Kentucky recalls for 25 people have occurred, partly due to increased activity and partly to replace retirees. Aleris is reorganising under Chapter 11 court protection. investment group buying two Commercial alloys smelters Commercial Alloys Corp.’s aluminium smelters in Minerva/Ohio, and Scottsboro/Alabama, which have been part of a Chapter 11 bankruptcy case since November 2008, were sold to an investment group headed by David Kozin of Chicago-based Imperial Zinc Corp. Imperial Coldwater Group LLC, which shares Imperial Zinc’s address, paid USD1.3m for the two facilities, plus a value not yet established for the inventory. The draft of the ‘final asset purchase agreement’ was filed in U.S. Bankruptcy Court for the Northern District of Ohio. Three scrap veterans at Imperial’s branch in Angola/Indiana – David Riddell, Aaron Stankewicz and Corbin Grimes – will handle metal purchase and some other responsibilities. At one time, all three worked for Imco Recycling, a company which had been eventually merged into Aleris International Inc. The Scottsboro plant is idle, while ship Anheuser-Busch and Novelis have had can be very stressful, as the rolling mill’s customer obtains intimate knowledge over time of margins between material cost and product price, partly from data fed into the detailed pricing formulas written into the contracts. If Novelis does begin purchasing directly from a long roster of suppliers, it will need to make concessions to recycler paranoia about credit risk from debtladen scrap consumers. If the industry’s relationships get shaken up, AB InBev might be tempted to strengthen ties to the smallest of the major canstock producers, Wise Metals Group. 48 ALUMINIUM · 9/2009
the Minerva plant was producing 1,800 to 2,270 tpm. Once the Minerva plant is up and running close to capacity, the Scottsboro smelter will be fired up. The Minerva smelter is expected to produce 3,600 to 4,100 tpm by the end of 2009. Commercial Alloys, based in Twinsburg/Ohio, also operated scrapyards there and in Jacksonville/Florida, which had been purchased by Reserve Management Group, Solon/Ohio. UK diecaster Thomas Brothers plans to close in october Leeds-based aluminium diecaster Thomas Brothers plans to close in October as a result of falling demand for its products and a loss of customers. The gravity diecasting company specialises in the manufacture of high quality aluminium castings for general and automotive industries, and has over 35 years experience in the industry. The company employs about 27 people. india’s Hindalco to close down wheel plant Hindalco Industries intends to shut down an aluminium alloy wheels plant at Silvassa in western India, and will take steps to sell the plant’s assets. The company did not give any reason for shutting the plant, which has the capacity to make 300,000 wheels a year, but said it would not have any impact on the operations and financials of the company. The plant’s wheels were approved for supply to most major automakers including Maruti Suzuki, Tata Motors, Ford and Hyundai. auto supplier J.l. French files for Chapter 11 J.L. French Automotive Castings Inc. filed for Chapter 11 protection on 13 July in response to U.S. automotive production declines and industrywide credit restrictions. The Sheboygan/Wisconsin-based aluminium automotive components manufacturer also plans to reduce its secured debt ALUMINIUM · 9/2009 to USD65m from about USD280m through debt-for-equity swaps with first- and second-lien term loan lenders in an effort to provide a stable financial foundation for its operations. The company and its domestic affiliates will complete a pre-negotiated restructuring under its Chapter 11 filing in the U.S. Bankruptcy Court for the District of Delaware. None of the company’s foreign operations are included. J.L. French has a USD15m debtor-in-possession (DIP) facility to fund working capital needs that might arise during the reorganisation, and expects to emerge from Chapter 11 within 90 days. J.L. French manufactures engineered aluminium die-cast automotive parts, including oil pans, engine front covers, engine blocks and transmission cases. southwire to pay Usd335,000 epa fine at Hawesville plant Southwire Co. has agreed to pay USD335,000 in civil penalties to the aluminium semis norTH ameriCa work starts on rebuilding alcoa press in Cleveland Work has begun on the initial stages of rebuilding Alcoa’s giant aerospace forging press in Cleveland, but without any word on the vast majority of C o m p a n y n e w s w o r l d w i d e state of Kentucky for a 2006 violation of the federal Clean Air Act. The fine related to testing, operational, monitoring and record-keeping requirements at the Carrollton/Georgia-based company’s secondary aluminium production facility in Hawesville/Kentucky. The fine represents the largest civil settlement obtained for violations of the Secondary Aluminium Maximum Achievable Control Technology (MACT) regulations at a single facility in the Southeastern United States. The Kentucky Energy and Environmental Cabinet Department of Air Quality has since confirmed that the air pollutant levels from the Hawesville facility now meet industry standards established by the MACT rule, which regulates the emission of metallic hazardous air pollutants, dioxins/furans, and hydrogen chloride and fluoride and chlorine associated with secondary aluminium production. Because the facility has come into compliance with the MACT standards, the settlement requires no further action to address compliance with the Clean Air Act at the facility. ■ funds needed to bring back the disabled equipment. Engineering work had begun and some parts had been ordered as part of a preliminary US- D22m allocated by the parent company for repairing the 50,000 tonne press, built originally by Mesta Machine Co. Among the parts needed would be castings for the base, ➝ 49 Vimetco
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